October 29, 2008

Tallinn may change her bank

Marge Tubalkain-Trell

Since the market value of SEB Liquidity Fund’s shares, which are part of Tallinn’s investment portfolio have fallen by 13%, the city may change her bank, Katrin Kendra, Tallinn’s financial director told Äripäev.

“Today there is no exact information on which assets and in which amount they were revaluated, I cannot say whether Tallinn is preserving shares in Liquidity fund or not. We think the sudden conservativeness the bank is pointing to, may cause several clients to transfer their deposits and Tallinn may weigh to move her corresponding account elsewhere,” Kendra commented.

She noted that according to the bank’s information, funds are nearly without risks and meant for more effective cash flow management.

“In the situation where the bank is informing its large clients of such a big decision through a laconic press announcement with no explanations, it cannot be considered to be a wish of keeping good clients´ relationship,” Kendra noted.